Salter Report
Encyclopedia
The Salter Report was named after Arthur Salter, who chaired an influential conference of road and rail experts in 1932. The report directed British government policy for transport funding
for decades to follow.
that applied to the railways had left them at an unfair disadvantage when compared to the road haulage industry, which was unregulated. It noted that the railway system, then organised into several regional companies
, probably had no need for many of the small branch line
s and services, as motor transport had shown itself to be more efficient for local deliveries. But it concluded that the existing system of road funding, which relied on local authorities to fund a significant portion of the road network, represented a subsidy to the road hauliers.
The lorry
had started to compete against rail freight
on long journeys, which was seen to be undesirable as it represented unfair commercial competition and added to road congestion. Although railway companies were experiencing financial difficulties as a result of the loss of their monopoly
of service, the committee looked at ways for the railway operators to cooperate with each other and the road haulage industry through integration, but still maintain commercial competition. The report stopped short of recommending direct subsidies
or the nationalisation of the railways, viewing this as unacceptably protectionist
and socialist
.
and private motor cars was seen to be of great benefit, but it noted that the growing numbers of motor vehicles were capable of making many more journeys than the previous generation of horse-drawn traffic. In particular, the hauling of heavy loads by road was useful but expensive as it caused more wear on the carriageways. To counteract this, the report recommended that local authorities should be able to restrict heavy traffic from local roads, and should be relieved of the burden of funding their maintenance. Instead, the motor vehicle should fully pay its way. The report recommended replacing the established system of road funding from the local rate payer wholly onto the operators of motor vehicles through changes in road pricing
.
, Oliver Stanley
, introduced new speed limits with the Road Traffic Act 1934
and a licensing system for commercial heavy goods vehicles and their operators. This was soon followed by Chancellor
Neville Chamberlain
who significantly increased the fees due for road tax and fuel.
These changes were applauded by the railway industry, whose price restrictions were partly lifted. They saw the road tax changes as a way to help them redress a common problem that was affecting railway companies across the world at that time.
The costs and conditions attached to the new licences and vehicle duty
were contentious to road users as they were based on axle weight and could be very expensive; many municipal corporations who ran their own fleets, bus companies, vehicle manufacturers, hauliers, showmen, trade unions and the coal industry protested and predicted crippling increases in fees. The former Transport Minister, Herbert Morrison
claimed that using: "the weapon of taxation of road transport as a means of putting the railways right was a foolish and idiotic policy". The new charges were blamed for driving heavier steam traction off the road in favour of the lighter lorries powered by internal combustion engines using imported oil. This was at a time of high unemployment in the British coal industry, when the steam haulage business required 950,000 tons of coal annually.
It also introduced an unpopular requirement for hauliers to produce paperwork to show that their drivers were operating safely and not being overworked. Previous attempts to impose safety rules on hauliers had been nearly impossible to enforce. The threat of withdrawing a licence was viewed as the best way of ensuring the new regulations were respected by the industry.
It was planned that the new charges on vehicles and petrol duties would contribute the £60 million needed annually for the Road Fund, and more besides in order to pay more of the social costs associated with motor traffic. Critics claimed that this would increase the cost of transport during the Great Depression
and keen foreign competition. Supporters countered this by noting that it was merely redistributing the burden from the ratepayer onto the haulier. The Treasury would make motor vehicles solely responsible for road costs, and levy these charges on motorised traffic, rather than through local government or penalising the railways. In doing so, it recognised that road vehicles had been "using the common highway for private profit, while endangering public safety, amenity, and capital".
as British Rail
in 1948, while the predicted closure of branch lines was finally implemented under the 'Beeching Axe
'.
The road duties introduced in 1933-4 remain as a key part of vehicle duties today. The centralised funding of roads supported a more planned approach towards a new network of bypasses and high speed routes through the Trunk Roads Act of 1936.
Motoring taxation in the United Kingdom
Motoring taxation in the United Kingdom comes in a variety of forms. There are fuel taxes, motor vehicle ownership and use taxes and also a few localised tolls and road pricing schemes in operation.There are proposals for a nationwide road tolling system....
for decades to follow.
Railways
The committee investigated the perception, current in the 1930s, that the safety, pricing and operating regulationsTrade restriction
A trade restriction is an artificial restriction on the trade of goods between two countries. It is the result of protectionism. However, the term is not uncontroversial since what one part may see as a trade restriction another may see as a way to protect consumers from inferior, harmful or...
that applied to the railways had left them at an unfair disadvantage when compared to the road haulage industry, which was unregulated. It noted that the railway system, then organised into several regional companies
Railways Act 1921
The Railways Act 1921, also known as the Grouping Act, was an enactment by the British government of David Lloyd George intended to stem the losses being made by many of the country's 120 railway companies, move the railways away from internal competition, and to retain some of the benefits which...
, probably had no need for many of the small branch line
Branch line
A branch line is a secondary railway line which branches off a more important through route, usually a main line. A very short branch line may be called a spur line...
s and services, as motor transport had shown itself to be more efficient for local deliveries. But it concluded that the existing system of road funding, which relied on local authorities to fund a significant portion of the road network, represented a subsidy to the road hauliers.
The lorry
Lorry
-Transport:* Lorry or truck, a large motor vehicle* Lorry, or a Mine car in USA: an open gondola with a tipping trough* Lorry , a horse-drawn low-loading trolley-In fiction:...
had started to compete against rail freight
Freight train
A freight train or goods train is a group of freight cars or goods wagons hauled by one or more locomotives on a railway, ultimately transporting cargo between two points as part of the logistics chain...
on long journeys, which was seen to be undesirable as it represented unfair commercial competition and added to road congestion. Although railway companies were experiencing financial difficulties as a result of the loss of their monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
of service, the committee looked at ways for the railway operators to cooperate with each other and the road haulage industry through integration, but still maintain commercial competition. The report stopped short of recommending direct subsidies
Subsidy
A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...
or the nationalisation of the railways, viewing this as unacceptably protectionist
Protectionism
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...
and socialist
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...
.
Road transport
The widespread use of public road passenger vehiclesPublic transport
Public transport is a shared passenger transportation service which is available for use by the general public, as distinct from modes such as taxicab, car pooling or hired buses which are not shared by strangers without private arrangement.Public transport modes include buses, trolleybuses, trams...
and private motor cars was seen to be of great benefit, but it noted that the growing numbers of motor vehicles were capable of making many more journeys than the previous generation of horse-drawn traffic. In particular, the hauling of heavy loads by road was useful but expensive as it caused more wear on the carriageways. To counteract this, the report recommended that local authorities should be able to restrict heavy traffic from local roads, and should be relieved of the burden of funding their maintenance. Instead, the motor vehicle should fully pay its way. The report recommended replacing the established system of road funding from the local rate payer wholly onto the operators of motor vehicles through changes in road pricing
Road pricing
Road pricing is an economic concept regarding the various direct charges applied for the use of roads. The road charges includes fuel taxes, licence fees, parking taxes, tolls, and congestion charges, including those which may vary by time of day, by the specific road, or by the specific vehicle...
.
Government action
The government adopted the committee's recommendations in 1933 when the Minister for TransportSecretary of State for Transport
The Secretary of State for Transport is the member of the cabinet responsible for the British Department for Transport. The role has had a high turnover as new appointments are blamed for the failures of decades of their predecessors...
, Oliver Stanley
Oliver Stanley
Oliver Frederick George Stanley MC, PC was a prominent British Conservative politician who held many ministerial posts before his early death when it was expected he would soon assume higher office....
, introduced new speed limits with the Road Traffic Act 1934
Road Traffic Act 1934
The Road Traffic Act 1934 was Act of the Parliament of the United Kingdom introduced by the then Minister of Transport Hore-Belisha after the 1931 general election which was won by the Conservative Party by an absolute majority of the votes cast...
and a licensing system for commercial heavy goods vehicles and their operators. This was soon followed by Chancellor
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
Neville Chamberlain
Neville Chamberlain
Arthur Neville Chamberlain FRS was a British Conservative politician who served as Prime Minister of the United Kingdom from May 1937 to May 1940. Chamberlain is best known for his appeasement foreign policy, and in particular for his signing of the Munich Agreement in 1938, conceding the...
who significantly increased the fees due for road tax and fuel.
These changes were applauded by the railway industry, whose price restrictions were partly lifted. They saw the road tax changes as a way to help them redress a common problem that was affecting railway companies across the world at that time.
The costs and conditions attached to the new licences and vehicle duty
Vehicle excise duty
Vehicle Excise Duty is a vehicle road use tax levied as an excise duty which must be paid for most types of vehicle which are to be used on the public roads in the United Kingdom...
were contentious to road users as they were based on axle weight and could be very expensive; many municipal corporations who ran their own fleets, bus companies, vehicle manufacturers, hauliers, showmen, trade unions and the coal industry protested and predicted crippling increases in fees. The former Transport Minister, Herbert Morrison
Herbert Morrison
Herbert Stanley Morrison, Baron Morrison of Lambeth, CH, PC was a British Labour politician; he held a various number of senior positions in the Cabinet, including Home Secretary, Foreign Secretary and Deputy Prime Minister.-Early life:Morrison was the son of a police constable and was born in...
claimed that using: "the weapon of taxation of road transport as a means of putting the railways right was a foolish and idiotic policy". The new charges were blamed for driving heavier steam traction off the road in favour of the lighter lorries powered by internal combustion engines using imported oil. This was at a time of high unemployment in the British coal industry, when the steam haulage business required 950,000 tons of coal annually.
It also introduced an unpopular requirement for hauliers to produce paperwork to show that their drivers were operating safely and not being overworked. Previous attempts to impose safety rules on hauliers had been nearly impossible to enforce. The threat of withdrawing a licence was viewed as the best way of ensuring the new regulations were respected by the industry.
It was planned that the new charges on vehicles and petrol duties would contribute the £60 million needed annually for the Road Fund, and more besides in order to pay more of the social costs associated with motor traffic. Critics claimed that this would increase the cost of transport during the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
and keen foreign competition. Supporters countered this by noting that it was merely redistributing the burden from the ratepayer onto the haulier. The Treasury would make motor vehicles solely responsible for road costs, and levy these charges on motorised traffic, rather than through local government or penalising the railways. In doing so, it recognised that road vehicles had been "using the common highway for private profit, while endangering public safety, amenity, and capital".
Legacy
The UK railway infrastructure held its ground as a freight and passenger system for many decades; this could be compared with countries such as the USA where road transport was allowed to gain a critical mass. The railways were eventually unified and nationalisedNationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
as British Rail
British Rail
British Railways , which from 1965 traded as British Rail, was the operator of most of the rail transport in Great Britain between 1948 and 1997. It was formed from the nationalisation of the "Big Four" British railway companies and lasted until the gradual privatisation of British Rail, in stages...
in 1948, while the predicted closure of branch lines was finally implemented under the 'Beeching Axe
Beeching Axe
The Beeching Axe or the Beeching Cuts are informal names for the British Government's attempt in the 1960s to reduce the cost of running British Railways, the nationalised railway system in the United Kingdom. The name is that of the main author of The Reshaping of British Railways, Dr Richard...
'.
The road duties introduced in 1933-4 remain as a key part of vehicle duties today. The centralised funding of roads supported a more planned approach towards a new network of bypasses and high speed routes through the Trunk Roads Act of 1936.